Energean Announcement of Significant Discovery of Gas at Karish North Drill
Tel Aviv, April 15, 2019. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that further to what was stated in sections 1.7.12 and 1.7.36(p) of the Company's Periodic Report to December 31, 2018 that was published on March 31, 2019 (ref. no. 2019-01-029344) (“the Periodic Report”) concerning the agreement between Delek Drilling Limited Partnership and Energean Israel Limited (“Energean”) for the sale of all the rights in lease I/16 “Tanin” and I/17 (Karish) (jointly “the Leases”) to Energean for a payment that includes, inter alia, royalties for natural gas and condensate produced from the Leases, on April 15, 2019 Energean Oil & Gas PLC, which to the best of the Company's knowledge is the controlling shareholder of Energean, published an announcement of a discovery of natural gas at the exploratory drill made at the “Karish North” prospect that is in the area of Lease I/17 “Karish” (“the Announcement”, “the Drill” and “the Discovery”, respectively). According to the Announcement, a preliminary analysis indicates an estimated quantity of 1 TCF - 1.5 TCF of Gas in Place .
On account of sale of the rights in the Leases to Energean, as of the date of this report the Company has no direct access to information about the Leases, the information provided above in this report including concerning the Discovery and the estimated quantity of gas discovered there is from the Announcement that was not prepared according to the reporting rules that apply to the Company according to Addendum 11 to the Securities Regulations (Periodic and Immediate Reports), 1970, and the Company has no way to independently verify the correctness of the details in the Announcement.
It should be noted that the Company has no information concerning the quantity of natural gas that will be recoverable from the Drill (if it will be developed). It should also be noted that according to the Announcement additional conditions are required to turn the Discovery into a commercial discovery capable of production. A commercial discovery capable of production (if it shall become such) is expected to have a positive impact on the forecast flow of royalties to which the Company is entitled from the sale of the rights in the Leases.
- Below is a link to the Announcement of Energean Oil and Gas:
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on April 15, 2019.
Delek Group is an independent E&P and the pioneering visionary behind the development of the East Med. With major finds in the Levant Basin, including the Leviathan (21.4 TCF) and Tamar (11.2 TCF) reservoirs and others, Delek is leading the region’s development into a major natural gas export hub. In addition, Delek has embarked on an international expansion with a focus on high-potential opportunities in the North Sea and North America. Delek Group is one of Israel’s largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (TASE:DLEKG) and are part of the TA 35 Index.
For more information on Delek Group please visit www.delek-group.com